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Corporate Strategy – Case Study Group B
ETH Zurich, 28.November 2011
Reto Kurmann - Stephan Henggeler - Samuel Mettler - Cyril Hollenstein – Jürg Gurtner

Case Study - Group B

Agenda

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Case Study - Group B

1. Introduction Bombardier Case
History of the company Bombardier

• • • • • • •

1937 1959 1967 1969 1971 1971 - 2001

B7 – Snowmobile launched A brand new industry: Snowmobiling New company name: Bombardier Limited The company went public Acquisition of Lohnerwerke GmbH Several acquisitions in rail transportation (become one of the leading suppliers of rail cars) Aerospace Transportation Recreational Products

1986

Acquisition of Canadair

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Case Study - Group B

1. Introduction Bombardier Case

Revenue and Profit development of Bombardier
Revenue last 6 years
1 18. = % G CA R

PBT last 6 years
7% 26. =

G CA

R

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Case Study - Group B

1. Introduction Bombardier Case

Revenue by Region of Bombardier

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Case Study - Group B

1. Introduction Bombardier Case
History of the company Adtranz

• • • •

1990 1995 1999 2001

ABB Verkehrssysteme ABB Daimler Benz Transportation DaimlerChrysler Rail Systems Adtranz

Adtranz as a company was twice the size of Bombardier

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Case Study - Group B

Agenda

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Case Study - Group B

2. Questions
• • • • •
Should Adtranz be absorbed or preserved ? What organisational structure would you propose if the merger succeeds? Where would you put headquarters?

What other possible challengers do you foresee after the merger? How can they be avoided/minimized?

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Case Study - Group B

Agenda

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Case Study - Group B

3. Organizational Structure

Bombardier Structures: five geographically-based operating units one market/functional unit North America Atlantic Europe Continental Europe

Mexico

China

Total Transit System

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Case Study - Group B

3. Organizational Structure

Adtranz Structures: product segments functions
Product Segment

Functions

• high speed trains • cars • subway trams •…

• bogies • drives • car bodies •…

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Case Study - Group B

3. Organizational Structure - Should Adtranz be absorbed or preserved? •
Merger or Aquisition ? „An ‘acquisition’ normally involves the purchase of another firm’s assets and liabilities, with the acquired firm continuing to exist as a legally owned subsidiary of the acquirer.“ (Source: Späth, ETH 2011)



Type of Aquisition
o o o

Horizontal Aquisition Market-extension Product-extension



Motivation
o o

Monopoly Theory Efficency Theory
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Case Study - Group B

3. Organizational Structure

Should Adtranz be absorbed or preserved ?
o

Absorbed − Adtranz is a „bunch“ of companies − No real culture − Lack of Management Skills

but:
o

Smooth Integration Process • keeping Adtranz Organization initially consistent • transferring Management Skills • Integrate Solutions/Skills in Bombardier Division

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Case Study - Group B

3. Organizational Structure

Level 1: Global HQ functions
o o o

Capital Group Cooperate Functions: Strategy, Marketing, Finance, Legal Cooperate TQM – Business Excellence Aerospace (1/3), Transportation (2/3), Recreational Products (5%) (in 2001) Goal to divest Recreational Products Global division with functional organisation Geographically-based operating-units (from Bombardier Transportation) Level 4: Product and Service oriented ETHZ -...
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